In 24 Hours, Naira Loses N65 Value Against US Dollar as CBN Sets New Exchange Rate

• The Nigerian currency depreciated again in value against the US dollar in the foreign exchange market
• Checks showed that the naira fell in both the official NAFEX market and the unofficial market
• The depreciation of the naira comes amid cheap sales of the dollar to BDC operators by the Central Bank of Nigeria

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The naira has again performed poorly in the official and unofficial foreign exchange markets.

Data from FMDQ securities shows that Nigerian currency weakened in value in the Nigerian Autonomous Foreign Exchange Market (NAFEM) to N1,300.15/$1 on Tuesday, April 24, 2024.

This represents a 5.3% or N65.66 depreciation compared to the previous day's rate of N1,234.49/$1.

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This happened as forex transactions at NAFEM increased by $23.48 million, or 21.3%, to $133.65 million from the $110.17 million achieved in the preceding day.

It is the same story for the naira against the pound sterling in the official market.

CBN data shows naira lost N111.01 of its value to exchange at N1,542.32/£1 compared with the preceding sessisession's31.31/£1

While against the euro, it lost N104.23 to settle at N1,332.35/€1 versus Monday's rate of N1,228.09/€1.

Naira to dollar in unofficial markets

It was a similar story for the naira in the parallel market, also known as the black market.

Checks showed that the naira on Tuesday weakened further by N25 to close at N1,275/$1, in contrast to the previous day’s close of N1,250/$1.

CBN sells dollars cheaply to BDC operators

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CBN crashes dollar, sells ‘cheap’ to BDCs, sets new exchange rate for Nigerians

Earlier, Legit.ng reported that the Central Bank of Nigeria again conducted another round of dollar sales to licensed Bureau De Change Operators.

The latest sale is part of the apex bank's plan to ensure enough liquidity in the market and halt the naira's fall.

The CBN has also fixed an exchange rate limit for the BDCs when selling to Nigerians seeking dollars.

Source: Legit.ng